Apple Buys a VR Startup For Creating Virtual Avatars

31 August 2020

The pandemic is pushing Apple to look for new revenue channels

Apple has acquired the Los Angeles startup Spaces, which is developing apps in the field of virtual reality. The company told Protocol about the acquisition.

Spaces used to be owned by DreamWorks Animation, but in 2016 it became an independent company. Prior to the pandemic, Spaces mostly served its VR spaces. But as the company was closed due to quarantine, Spaces went online and began making animated virtual avatars for video conferencing users.

According to Marketing Dive, under normal circumstances, Apple would not have made such an investment. But due to the pandemic, the demand for video call applications has grown significantly. According to a study by The 614 Group, 71% of marketers and media believe that video conferencing will be the only way to work as a team even next year.

Apple continues to look for new revenue streams in addition to its main device sales business. Last year, the company acquired the British special effects studio iKinema, and in 2018 — the company Akonia Holographics with 200 patents for holographic systems.

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